Ending a Lease

What to do when your lease is up

When you leased your new vehicle from Summit Fleet, the end of the lease term was probably the last thing on your mind. Your main concern then was probably the idea of a lease commitment and that nagging self-doubt as to whether this was a smart thing to do.

Well, congratulations! You survived. Not only have you enjoyed years of vehicle reliability and prestige but you may now be in a position of equity! You can now invest in a new or later model vehicle.

What are my options at the end of the lease term?

Generally speaking you have the following choices:

  • Return the vehicle to Summit Fleet
  • Lease a new vehicle from Summit Fleet
  • Extend your current lease of your choice. This is the most economical way to lease your new transportation. You save money by only ordering the options that you want and you have an advantage when it comes to the price you pay for the vehicle.

Which option is best?

At Summit Fleet, we recommend that you replace the vehicle rather than purchase for these reasons:

  • Vehicles depreciate rapidly in value. There is no real advantage to ownership
  • As your vehicle grows older, it becomes more costly to maintain and requires expensive repairs. These repairs, while they improve performance, do not enhance the value of the vehicle
  • To remain ‘cost-effective’, your vehicle needs to be replaced within a relatively short time. The cost of replacement increases every year

What constitutes “excess wear & use”?

Your Lease Agreement explains this in specific language. Essentially, it requires that the vehicle be returned to Summit Fleet in sell-able condition with no appreciable defects.

  • All wear and use items, (tires, brakes, wipers, windshield etc. as outlined in your contract) should be in appropriate condition
  • The vehicle in all respects, should function as it was originally designed to operate
  • All equipment that was on the vehicle when it was delivered should still be in place (radio, bumpers, hitches, special wheels, van body etc)
  • The vehicle’s interior should be free from stains, rips, holes or burns
  • The exterior should be free of any major damage, rust chips or discoloration

To make this assessment, stand two to three metres away from the vehicle and consider it as a potential buyer. Any problems discernible at the distance are usually considered ‘excessive’.

What are my obligations at the end of the lease term?

If you have a Purchase Option Lease or an Open Lease and you elect to purchase the vehicle, then simply tell us and you don’t need to read any further. We will arrange the paperwork. If you decide not to purchase the vehicle, or your lease is a Closed Lease then you may have some potential liabilities.

  • Charges for excess wear and/or reconditioning
  • Charges for excess mileage exceeding the amount

Where do I go from here?

Call your Lease Representative as soon as possible to explore the leasing option most favourable to you.